Saudi Minister of Finance Mohammed Al-Jadaan and Minister of Economy and Planning Faisal Alibrahim were featured in a ‘2025 Budget Forum’ event that detailed Saudi Arabia’s FY 2025 Budget.
Saudi Arabia’s state budget for fiscal year 2025 projects revenues of $315.73 billion and expenditures of $342.63 billion leading to a deficit of $26.9 billion.
The projected deficit of $26.8 billion, amounts to 2.3% of GDP, down from a 2024 deficit of $30.6 billion, or 2.8% of GDP.
“The deficit is part of the overall fiscal planning for the budget. He also said that the Government aims to continue domestic and international fiscal operations to bridge the expected 2025 deficit and repay debt due during 2025 and over the medium term. The Government also aims to take advantage of available market opportunities to implement alternative government fiscal operations that enhance economic growth, such as spending that is directed towards strategies, mega projects, and Saudi Vision 2030 programs. It is expected that the public debt balance will reach SAR 1,300 billion (29.9% of GDP) by the end of 2025, compared to SAR 1,199 billion (29.3% of GDP) in 2024.”“Minister Aljadaan added that the Government’s continued efforts to develop the labor market contributed to providing quality jobs, which led to a decline in the unemployment rate among Saudis to its lowest historical level, reaching 7.1% by the end of the second quarter of 2024. In addition, the women’s participation rate in the labor market reached 35.4%, exceeding the Vision’s target of 30%. These positive numbers are a result of efforts to diversify the economy by strengthening promising sectors, empowering the private sector, and implementing development projects under Saudi Vision 2030, as well as allowing more segments of society to enter the labor market through new work patterns.”
Arab News, Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending
Speaking at the 2025 Budget Forum, Minister Al-Jadaan said, “Diversifying the economy through stable public finance is a cornerstone of Vision 2030We have transitioned away from dependence on fluctuating oil revenues by focusing on long-term financial policies, balancing government spending with tax burdens to support economic stability.” He further highlighted that structural reforms under Vision 2030 have significantly boosted the economy, with non-oil revenues reaching SAR 472 billion—clear evidence of the Kingdom’s growing economic diversity. He also pointed out that the Kingdom now leverages debt instruments to ensure continuous and sustainable financial coverage for both government and private sector needs.
Minister of Economy and Planning Faisal Alibrahim noted that the Kingdom’s non-oil activities have grown by an estimated 6% over the past three years, now contributing 52% of real GDP. “This is a remarkable shift,” Alibrahim said. “Non-oil activities are projected to grow by 3.9% this year and 4.8% next year, reflecting the increasing dynamism of the private sector and productivity growth.”
The 2025 budget calculations exclude any additional dividend distributions by Saudi Aramco.
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